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-   -   Delta Sells Compass and Mesaba (https://www.airlinepilotforums.com/major/51783-delta-sells-compass-mesaba.html)

RockyBoy 07-01-2010 05:47 PM


Originally Posted by flynwmn (Post 835462)
So Sec 1.40.e Exception 2 states:

In the event the flow provisions of NWA LOA 2006-10 and LOA 2006-14 cease to be available, either at the feeder carrier affiliate referenced in such LOAs or at another carrier, the number of jet aircraft configured with 71-76 passenger seats specified in Section 1 B.40.d will revert to 85.

Assuming they want to terminate the flow, I wonder how they'll get around this one. Hmmmm................

Bringing back the ARJ

Been doing a little studying, and from what I can see the Mesaba flow will be done when they are no longer an affiliate of Delta. The Mesaba flow is LOA 2008-01 which can be cancelled when they are no longer an affiliate which they will not be once they are sold to Pinnacle. They will then just be subject to 2006-10 like Pinnacle and all the other DCI carriers for preferential hiring but no flow-thru. The Compass flow is 2006-14. So they can stop the Mesaba flow but not the Compass flow LOA or the DCI carrier preferential hiring LOA without lowering the number of 71-76 seat jets to 85.

Unless DALPA gives up that exception, the Compass flow and DCI preferential hiring LOA should remain intact after they are sold. The only grey area I see is the conflict between the LOA stating that the flow can be terminated for newhires without affecting the cap while the JCBA states that if the flow ceases to be available at the affiliate or another carrier then the cap goes to 85. Nothing is said in the JCBA that applies to the flow being stopped for newhires. I guess a high paid lawyer will be able to read between the lines and tell us what the deal is as far as newhires being subject to the flow or not.

I think we need to all call our reps and tell them what we want in return for giving up the exception in the JCBA because I'm sure the company will shortly be asking to delete that little nugget. That flow-down is a great protection against furloughs even if it does mean flowing down to Trans States in the future. We better not give it up.

Ad Lib 07-01-2010 06:10 PM


Originally Posted by KC10 FATboy (Post 835704)
I guess when the management said at the CVG meeting, "we're getting out of the regional business", they weren't kidding

Look at the numbers. Delta is not getting out of the regional business, they are only restructuring it using the same methodology they have for years.

When more than 50% of domestic narrow body flying is outsourced, we are only making a distinction that it is flying that Delta pilots do not perform. It is not our core business model any more. But the decreases I expected to see were reversed by these long term agreements.

Ad Lib 07-01-2010 06:15 PM


Originally Posted by JoeMerchant (Post 835673)
I'm amazed how many pilots keep falling for the old "flowthrough" sales job. Fool me once.....

It is cheap political sugar water and very popular.

buzzpat 07-01-2010 06:16 PM


Originally Posted by Ad Lib (Post 835715)
Look at the numbers. Delta is not getting out of the regional business, they are only restructuring it using the same methodology they have for years.

When more than 50% of domestic narrow body flying is outsourced, we are only making a distinction that it is flying that Delta pilots do not perform. It is not our core business model any more. But the decreases I expected to see were reversed by these long term agreements.

Looks like to me that we're reclaiming that flying for our guys, not that we're bailing on narrowbody flying. This is a good thing for DAL guys, not an abdication of a business model.

Ad Lib 07-01-2010 06:38 PM


Originally Posted by buzzpat (Post 835720)
Looks like to me that we're reclaiming that flying for our guys, not that we're bailing on narrowbody flying. This is a good thing for DAL guys, not an abdication of a business model.

Have any numbers to support that?

As I read the announcements, the involved carriers will continue to operate status quo with growth which correlates with the operations they just bought with contract extensions. If anything we are now contractually restricted from pulling down this flying.

If the flying is at risk ( as stated on the web boards in CONTRAST to what managements have published ) then maybe a bankruptcy could take some out, but no one bought into this deal expecting to lose money.

But hey, I'm always on the look out for good news. I;d love to read what you're quoting from.

Check Essential 07-01-2010 06:39 PM


Originally Posted by RockyBoy (Post 835706)
Been doing a little studying,


So they can stop the Mesaba flow but not the Compass flow LOA or the DCI carrier preferential hiring LOA without lowering the number of 71-76 seat jets to 85.


I think we need to all call our reps and tell them what we want in return for giving up the exception in the JCBA because I'm sure the company will shortly be asking to delete that little nugget. That flow-down is a great protection against furloughs even if it does mean flowing down to Trans States in the future. We better not give it up.

Rocky-
Excellent analysis.
One discrepancy - I would argue that the Mesaba flow also must continue or the exception applies.

What do you make of the words "or at another carrier" in the exception?
I think that would be Mesaba. If its not Mesaba, what is the purpose of that phrase?

Boomer 07-01-2010 06:48 PM


Originally Posted by NuGuy (Post 835465)
One ROC style screw up, and you're on the hook for a lot of cash.

That's the wrong Rochester.

JungleBus 07-01-2010 06:52 PM


Originally Posted by Boomer (Post 835736)
That's the wrong Rochester.

How bout RST? :D

buzzpat 07-01-2010 06:54 PM


Originally Posted by Ad Lib (Post 835730)
Have any numbers to support that?

As I read the announcements, the involved carriers will continue to operate status quo with growth which correlates with the operations they just bought with contract extensions. If anything we are now contractually restricted from pulling down this flying.

If the flying is at risk ( as stated on the web boards in CONTRAST to what managements have published ) then maybe a bankruptcy could take some out, but no one bought into this deal expecting to lose money.

But hey, I'm always on the look out for good news. I;d love to read what you're quoting from.

Its an opinion dude. Ergo the phrase "looks to me like...." Relax.

Boomer 07-01-2010 06:56 PM


Originally Posted by JungleBus (Post 835739)
How bout RST? :D

Mo better, thanks.


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